Bank Vozrozhdenie was ranked second by volume of lending to SME’s

7 October 2011

Bank Vozrozhdenie was ranked second in Russia by volume of loans provided to SME’s in accordance with RBC rating based on H1 2011 results (this rating exclude Sberbank). Volume of loans provided by the Bank to SME’s grew more than two times YoY and amounted to RR 73.7 bln.

“Historically share of loans to SMEs in our loan portfolio exceed 50%; we market ourselves as the Bank for small and medium size enterprises. High share of loans to this segment in our portfolio is not just a recent year tendency, but result of the Bank’s long-term strategy”, — noticed Luydmila Goncharova, Deputy Chairwomen of the Management Board.

In the context of the above business-strategy development the Bank participates in state and international programs aimed at SME support, particularly in State Program of SME support implemented by Economic Development Ministry and Vnesheconombank through SME Bank. In accordance with the terms of this program financing will be provided to SMEs located in 19 regions of the bank’s presence within next 5 years at the expense of SME Bank and Bank Vozrozhdenie’s own resources. Notably that financing will be provided by the banks in equal proportions for the total amount of RR 6bln. For today over than 300 borrowers received loans by concluding 350 agreements. Most of financing, not less than RR1 bln, was provided to Moscow Oblast which is a key region for the Bank’s business. Large portfolio was also created at the south of Russia exceeding RR 1,1bln.

Regional guarantee funds and other infrastructure organizations aimed at support of SME lending, including funds of Moscow and Moscow Oblast, Stavropol, Rostov-on—Don, Volgograd, Tula, Murmansk, Magadan, Voronezh Regions and Republic of Mordova are also Bank’s partners in SME financing. Agreements of cooperation with St. Petersburg Fund, Karelia Republic, Altai Territory and Ryazan Region are in the process of signing. Today, the volume of letters of comfort issued by regional funds on SME support for the Bank exceeds RR 300mln, that make it possible to finance SMEs for amount exceeding RR 600mln. Bank Vozrozhdenie actively extends the number of partners in programs of state support of lending to SMEs for the purpose to provide borrowers with the most comfortable lending terms.

Another way of financial support to SME’s implemented by the Bank is long-term partnership with the Europan Bank for Reconstruction and Development (EBRD). Within cooperation with EBRD two facilities were provided to the Bank for the 5 year period in amount of USD 35 mln for SME financing and USD 16mln for financing of micro and small enterprises. The present day volume of provided loans comprises RR 4.5 bln by 473 agreements, exceeding the limit fixed for the Bank almost three times.